SoFi Technologies (NASDAQ:SOFI) stock closed about 5% higher yesterday after Citi analyst Ashwin Shirvaikar resumed coverage on the stock with a Buy rating. Furthermore, he has set a price target of $11, which implies an upside potential of 41.8% from the current level. The analyst expresses bullish sentiment regarding the company’s recent capital market transactions.
SoFi is a financial technology company offering a range of products, including student loan refinancing, personal loans, mortgages, and investment services.
Interestingly, Shirvaikar is a Top-rated analyst with a success rate of 38% on SOFI. Investors should note that TipRanks ranks the Top analysts according to industry, timeline, and benchmarks. The ranking reflects an analyst’s ability to deliver higher returns through recommendations.
Analyst’s Opinion on SOFI Stock
The analyst is optimistic about the impact of SoFi’s capital market transactions. Recently, the company exchanged $600 million in convertible senior notes for shares. Shirvaikar believes that the exchange of convertible senior notes should enhance SoFi’s total risk-based capital ratio and potentially increase earnings in Q1 2024. Furthermore, he believes that Sofi’s decision to issue new convertible senior notes to retire higher-cost debt instruments should help improve profitability.
Moreover, the analyst holds an optimistic outlook on SOFI stock, citing the company’s efforts to diversify revenue sources and expand its deposit base.
SoFi: Q1 Expectations
Investors should note that the bullish rating comes ahead of SoFi’s first-quarter results, due on April 29th. Currently, Wall Street expects SOFI to post revenue of $552.9 million in Q1, reflecting a year-over-year decrease of 9%. Further, analysts project that SOFI will report earnings of $0.01 per share compared with a loss of $0.05 in the prior-year quarter.
What Is the Price Target for SoFi?
On TipRanks, SoFi has a Hold consensus rating based on three Buys, six Holds, and two Sells. The analysts’ average price target on SOFI stock of $9.18 implies a 18.3% upside potential. The stock is down nearly 22% so far this year.
